Foreign Currency Exchange Trading

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Trade all our forex contracts commission-free. You can open a new forex position from just 2% of the contract value.

Depending on conditions in the underlying market, our spread can be as low as 1 pip on currency pairs such as EUR/USD and USD/JPY. Spreads start from 2 pips on GBP/USD and many other major currencies. All our contract sizes are set out in the Dealing spreads.

Opening the position

You decide to go long on the euro against the US dollar. On 29 October 2009, our quote is 1.4858/1.4859, and you buy 1 contract (the equivalent of EUR100,000) at 1.4859. The value of your position is EUR100,000 x 1.4859 = USD148,590. To open the position you supply a deposit of just 2% of the position. Your deposit is therefore 2% x USD148,590 = USD2971.80. There is no commission to pay on forex trades.

Interest adjustments

While the position remains open, your account is debited or credited to the current Tom/Next rate. Tom/Next expresses in pips the difference between the interest paid to borrow the currency that is being notionally sold overnight, and the interest received from holding the currency being notionally bought overnight. An administrative charge not exceeding 0.3% per annum applies on either side of the current Tom/Next spread. This maximum charge will apply to both regular and mini-contracts.

Closing the forex position

A few days later, on 9 November 2009, EUR/USD has risen to 1.5019/1.5020 and you take your profit by selling 1 contract at 1.5019. Your gross profit on the trade is calculated as follows:

Profit

Closing transaction USD100,000 (1 contract) x 1.5019 = US150,190
Opening transaction USD100,000 (1 contract) x 1.4859 = US148,590

Gross profit: USD1600

To calculate the net result you also have to include interest adjustments. For more information see Contract Details.

With transparent trading costs, share CFDs available at the guaranteed market price, one of the lowest financing rates around, and segregated client funds, IG Markets is Singapore's number one CFD provider for customer satisfaction. IG Markets offers forex trading and CFDs on all the leading Asian and international shares in local denominations, as well as a range of stock indices, including the Singapore Blue Chip. Exclusive to IG Markets is our selection of SGD-Denominated CFDs, which eliminate currency exposure when trading foreign stock indices. We also offer a range of research and analysis resources to keep you up-to-date with the latest market news.

Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved.

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